A National Analysis of Public/Private Wage Differentials at the State and Local Levels by Race and Gender
38 Pages Posted: 25 Feb 2011
Date Written: February 1, 2011
This study examines pay differences between comparable workers in state and local governments and in private firms in the same state. Using a pooled sample of national census data (ACS 2001-2006), we test whether private/public pay differential exists at the state and local levels and whether such differentials are race and gender dependent. Additionally, using 1990 and 2000 PUMS data, we assess whether such differentials are increasing or decreasing over time. Economist generally find that public employees are paid more than comparable private-sector employees, but research on public/private pay differentials at the state level is scarce. We find that that most SLGs pay less than private firms in the same state for similar workers. This is especially true for white men and Asians. Blacks and Latinos earn more in the public than private sector. Suggested future research is discussed.
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